US DRILLERS CUT OIL AND GAS RIGS FOR THIRD WEEK IN A ROW

In the week ending May 10, U.S. energy companies continued to reduce the number of oil and natural gas rigs in operation for the third consecutive week, according to data from energy services firm Baker Hughes. The total oil and gas rig count decreased by two to 603, reaching its lowest level since January 2022. Compared to the same period last year, the total rig count is down by 128 rigs, representing an 18% decline.

Specifically, the number of oil rigs declined by three to 496, marking their lowest level since November, while gas rigs increased by one to 103. This downward trend in rig count follows a broader decline in 2023, with the oil and gas rig count dropping by approximately 20%. This decline contrasts with the significant increases seen in 2021 and 2022, as companies responded to lower oil and gas prices, rising labor and equipment costs due to inflation, and a focus on debt reduction and shareholder returns rather than production growth.

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